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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Chamberlin Plc | LSE:CMH | London | Ordinary Share | GB0001870228 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.70 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Engineering Services | 20.72M | -125k | -0.0007 | -10.00 | 1.26M |
From May 2019 to May 2024
TIDMCMH
RNS Number : 0571Z
Chamberlin PLC
24 May 2016
24 May 2016
AIM: CMH
CHAMBERLIN plc
("Chamberlin", the "Company" or the "Group")
FINAL RESULTS
for the year ended 31 March 2016
KEY POINTS
-- Results affected by tougher trading conditions and currency, in line with expectations
-- Revenues of GBP35.0m (2015: GBP40.8m) - reflects weak Euro and downturn in steel, oil and gas and mining sectors
-- Underlying profit before tax* of GBP0.7m (2015: GBP0.8m) - with GBP1.0m adverse impact from weak Euro
Loss before tax on an IFRS basis of GBP0.2m (2015: profit of GBP0.1m)
-- Underlying diluted profit per share* of 5.5p (2015: 7.2p)
IFRS diluted loss per share of 3.3p (2015: profit per share of 0.2p)
-- Cash inflow from operations increased to GBP2.3m (2015: GBP1.3m)
-- Net debt at 31 March 2016 reduced to GBP3.2m (30 September 2015: GBP4.3m, 31 March 2015 GBP3.8m)
-- Major new automotive contract announced in February 2016 will commence delivery in H2 2017 -- Initiative to develop machining capability - will support new long term growth opportunities -- Board remains committed to delivering further progress
*Underlying figures are stated before exceptional items, administration costs of the pension scheme and net financing costs on pension obligations, share based payment costs and the associated tax impact of these items.
Chairman, Keith Butler-Wheelhouse, commented:
"Trading conditions over the year have been challenging, with a continuing slowdown in the Group's core markets and the strength of Sterling against the Euro a significant headwind. Revenues at GBP35.0m and underlying profit before tax at GBP0.7m are in line with market expectations, with this performance supported by both our tight focus on cost and our programme to improve efficiencies and improve processes.
The Group has closed the financial year with major new contracts wins which support a return to profit growth as production volumes come on stream. This is encouraging and our accompanying initiative to establish a new machining facility will position the Group as the only fully integrated supplier of grey iron bearing housings in Europe. We remain very excited about the significant new long term growth opportunities this opens up.
While there is still work to be done, the Group is in a stronger position than it was two years ago and we remain committed to delivering further progress. We will provide a further update on trading at the AGM."
Enquiries
Chamberlin plc (www.chamberlin.co.uk) T: 01922 707100 Kevin Nolan, Chief Executive David Roberts, Finance Director Panmure Gordon (UK) Limited T: 020 7886 (Nominated Adviser and Broker) 2500 Adam James/ Peter Steel KTZ Communications T: 020 3178 (Financial PR) 6378 Katie Tzouliadis, Viktoria Langley, Emma Pearson
Chairman's Statement
Introduction
Trading results have deteriorated in a challenging period. We have seen a continuing slowdown in the Group's core markets and the strength of Sterling against the Euro was a significant headwind. Revenues at GBP35.0m and underlying profit before tax at GBP0.7m are in line with market expectations, reflecting our trading update on 29 February 2016. This performance has been supported by both our tight focus on cost and our programme to improve efficiencies and improve processes.
We reported in our half yearly results that we believed that the Group was better positioned to win profitable revenue and, in the last quarter, were delighted to announce that we had secured a major new automotive contract. In addition to demonstrating Walsall's ability to compete on a global basis in its specialisation, this new contract is strategically significant as it marks the Group's move into the supply of fully machined components. To support this, we are establishing a new machining facility which, when complete, will position the Group as the only fully integrated supplier of grey iron bearing housings in Europe. We remain very excited about the significant new long term growth opportunities this opens up for the Group.
Results
The Group generated revenues of GBP35.0m (2015: GBP40.8m) for the year to 31 March 2016, reflecting the severe downturn in key markets, including steel and oil and gas. In addition, adverse Euro/ Sterling currency accounted for GBP1.1m of the year-on-year reduction. Approximately 30% of Group sales are denominated in Euros which were transacted at an average rate of EUR1.34 (2015: EUR1.24).
Underlying profit before tax was GBP0.7m (2015: GBP0.8m). Diluted underlying profit per share was 5.5p (2015: 7.2p).
On an IFRS basis, the Group generated a loss before tax of GBP0.2m (2015: profit of GBP0.1m) after accounting for restructuring costs of GBP0.5m and administration and finance costs on the closed pension scheme of GBP0.4m. Diluted statutory loss per share was 3.3p (2015: profit per share of 0.2p).
The net debt position at 31 March 2016 was reduced by GBP0.6m year-on-year to GBP3.2m (2015: GBP3.8m). The Group has debt facilities of GBP8.0m, of which GBP3.2m was available at 31 March 2016 for drawdown.
Dividend
No dividend is proposed for the period under review (2015: nil).
Staff
In a very challenging year, our staff have demonstrated their commitment and dedication, and on behalf of the Board, I would like to thank everyone across the business for their hard work. The ongoing process of driving the business forward is underpinned by the talent and efforts of all our teams.
Strategy & Outlook
The Group has closed the financial year with major new contract wins which support a return to profit growth as production volumes come on stream. This is encouraging, as is our investment in new machining capability, which will strengthen our market positioning and widen opportunities.
While there is still work to be done, the Group is in a stronger position than it was two years ago and we remain committed to delivering further progress. We will provide a further update on trading at the AGM.
Keith Butler-Wheelhouse
Chairman
23 May 2016
Chief Executive's Review
The Group's overall performance has been robust in difficult trading conditions and the outcome in underlying profits reflects our work over the last two years or so to realign the cost base and improve efficiencies and processes. Our focus remains on improving performance and in particular capturing the new opportunities that we have identified in the automotive sector.
Foundries
While foundry revenues decreased year-on-year to GBP25.6m (2015: GBP30.4m), operating profit at GBP1.2m showed only a GBP0.1m reduction (2015: GBP1.3m).
The Group operates three foundries, at Walsall, Leicester and Scunthorpe, each with a different specialisation. Our foundry at Walsall is our flagship operation and drives approximately half the foundry division's sales. Walsall's expertise is in producing small castings, typically below 3kg in weight, which have complex internal geometry. The complex geometry is achieved through the use of innovative core assembly techniques and, importantly, the foundry is capable of producing these castings in high volumes. The automotive turbocharger segment is a major market for Walsall, with modern designs requiring precise alignment of cooling and lubrication passages to meet the increased performance demanded by modern engines. Legislation remains a major driver of this market, with the requirement to reduce CO(2) emissions promoting the introduction of smaller, turbocharged petrol engines. Turbochargers accounted for 44.4% of the Foundry Division sales over the year (2015: 40.3%). Walsall's award of a major new automotive contract in the final quarter of the financial year reflects the foundry's ability to compete internationally in its specialist area. The contract is also strategically important as we will be supplying turbo charger bearing housings which are fully machined in-house. To support this, we are investing an initial GBP1.6m in a new machining facility. This initiative is an exciting development which we expect to open up significant new long term growth opportunities, with Walsall positioned as the only fully integrated supplier of grey iron bearing housings in Europe.
Our foundry in Leicester produces mid-size castings typically around 20kg, with moderately complex internal shapes although typically with demanding metallurgy requirements around temperature, strength and wear resistance. The Scunthorpe foundry focuses on heavy castings weighing up to 6,000kg which have complex geometry and challenging metallurgy. These castings are used in applications where there is a requirement for high strength or high temperature performance, for instance in large process compressors, industrial gas turbines and mining, quarrying and construction equipment. Demand at both foundries remained subdued and we have taken action to reduce the cost base at both foundries to ensure a lower breakeven point.
Engineering
Revenues from the engineering operations, comprising our Exidor and Petrel businesses, decreased year-on-year to GBP9.4m (2015: GBP10.4m) and operating profit was GBP0.7m (2015: GBP1.0m). This Division now accounts for approximately 27% of Group revenues.
Our Exidor business is the UK market leader in panic and emergency exit door hardware. The business operates in a highly regulated market as its products are for life-critical applications and its customers place great value upon the assurance of genuinely British designed, manufactured and certified product. The business performed well and we are pleased with its continuing progress in increasing export sales. We remain focused on driving overseas sales while continuing to maintain Exidor's leading UK position.
Petrel Limited has a well established reputation for designing and manufacturing high quality lighting and control equipment for use in hazardous or demanding environments. The business supplies customers across the UK and Europe as well as internationally. Sales at Petrel have been affected by the downturn in the oil & gas sector. However, the business is continuing to invest in developing its LED offering as well as its portable light fittings range to ensure that customers benefit from ongoing advances in technology. Approximately 11.8% of sales (2015: 11.6%) were generated from portable lighting and LED products over the year and we expect this percentage to continue to increase as the business transitions to LED.
Outlook
We expect trading conditions to remain constrained in some of our key markets and, reflecting this, we remain focused on cost control and efficiencies. Nonetheless, we are also encouraged by the opportunities we see for our foundry activities at Walsall, underpinned by recent contract wins and our initiative to develop our machining capability.
Kevin Nolan
Chief Executive
23 May 2016
Finance Review
Overview
Sales decreased by 14.3% during the year to GBP35.0m (2015: GBP40.8m). Gross profit margin increased from 20.1% in 2015 to 21.0% in 2016.
Underlying profit before tax was GBP0.7m (2015: GBP0.8m). Diluted underlying earnings per share was 5.5p (2015: 7.2p).
The IFRS results show an operating profit of GBP0.1m (2015: GBP0.4m), a loss before tax of GBP0.2m (2015: profit of GBP0.1m) and a statutory loss per share of 3.3p (2015: earnings per share 0.2p).
Exceptional items
Exceptional items in the year included GBP0.5m (2015: GBP0.4m) relating to the realignment of the cost base of the Group. As a result the headcount of the Group has been reduced by 9.8% from 399 to 360.
Tax
The Group's underlying tax charge for the year was GBP0.2m (2015: GBP0.2m) with an underlying effective rate of 31% (2015: 27%). The IFRS total tax charge for the year was nil (2015: GBP0.1m), an effective tax rate of 11% (2015: 79%).
Cash generation and financing
Operating cash inflow was GBP2.3m (2015: GBP1.3m).
Capital expenditure for the year increased to GBP1.5m (2015: GBP1.4m). This was ahead of depreciation and amortisation of GBP1.3m (2015: GBP1.3m).
Our overdraft and net borrowings at 31 March 2016 decreased to GBP3.2m (2015: GBP3.8m). The Group debt facility has four elements: GBP7.0m invoice discounting facility, GBP0.5m overdraft, a GBP0.4m loan repayable over two years and other finance leases of GBP0.1m. The Group is now trading with a comfortable level of headroom within these facilities.
Foreign exchange
It is the Group's policy to minimise risk to exchange rate movements affecting sales and purchases by economically hedging or netting currency exposures at the time of commitment, or when there is a high probability of future commitment, using currency instruments (primarily forward exchange contracts). A proportion of forecast exposures are hedged depending on the level of confidence and hedging is topped up following regular reviews. On this basis up to 50% of the Group's annual exposures are likely to be hedged at any point in time and the Group's net transactional exposure to different currencies varies from time to time.
Approximately 30% of the Group's revenues are denominated in Euros. During the year to 31 March 2016 the average exchange rate used to translate into GBP sterling was EUR1.34 (31 March 2015: EUR1.24).
Pension
The Group's defined benefit pension scheme was closed to future accrual in 2007. Following the last triennial valuation, as at 1 April 2013, contributions were set at GBP0.3m per year for the period under review increasing by 3% per year thereafter based on a deficit recovery period of 14 years.
The pension expense for the defined benefit scheme was GBP0.2m in 2016 (2015: GBP0.2m), and is shown in non-underlying. The Group cash contribution during the year was GBP0.3m (2015: GBP0.3m).
The Group operates a defined contribution pension scheme for its current employees. The cost of GBP0.3m (2015: GBP0.3m) is included within underlying operating performance.
The IAS 19 deficit at 31 March 2016 was GBP4.7m (2015: GBP4.5m). The increase principally reflects the underperformance on assets against expected levels partially offset by the increase in the discount rate used to calculate scheme liabilities, as a consequence of a rise in bond yields over the last year.
David Roberts
23 May 2016
Consolidated Income Statement
for the year ended 31 March 2016
Hot Features
Premium
Year ended 31 March Year ended 31 March
2016 2015
------------------------------------------ --------------------------------------
+ Non-
Note Underlying + Non-underlying Total Underlying underlying Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 3. 34,988 - 34,988 40,835 - 40,835
Cost of sales (27,657) - (27,657) (32,612) - (32,612)
Gross profit 7,331 - 7,331 8,223 - 8,223
Other operating
expenses 7. (6,501) (746) (7,247) (7,236) (583) (7,819)
----------- ------------------ --------- ----------- -------------- ---------
Operating
profit/ (loss) 830 (746) 84 987 (583) 404
Finance costs 4. (178) (142) (320) (184) (144) (328)
----------- ------------------ --------- ----------- -------------- ---------
Profit/ (loss)
before tax 652 (888) (236) 803 (727) 76
Tax (expense)/
credit (202) 177 (25) (213) 153 (60)
----------- ------------------ --------- ----------- -------------- ---------
Profit /(loss)
for the year
from continuing
operations
attributable
to equity
holders of
the parent
Company 450 (711) (261) 590 (574) 16
=========== ================== ========= =========== ============== =========
Earnings/
(loss) per
share
Basic 6. (3.3)p 0.2p
Basic underlying 6. 5.7p 7.4p
Diluted 6. (3.3)p 0.2p
Diluted underlying 6. 5.5p 7.2p
+ Non-underlying items represent exceptional
items as disclosed in note 7, administration
costs of the pension scheme and net financing
costs on pension obligations, share based payment
costs and associated tax impact of these items.
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2016
2016 2015
GBP000 GBP000
(Loss)/ profit for the year (261) 16
Other comprehensive income
Reclassification for cash
flow hedge included in sales (419) 193
Movements in fair value on
cash flow hedges taken to
other comprehensive income (193) (162)
Deferred tax on movement
in cash flow hedges 123 (6)
Movement on deferred tax (9) -
relating to rate change
-------- --------
Net other comprehensive income
that may be recycled to profit
and loss (498) 25
Re-measurement (losses) on
pension assets and liabilities (254) (1,150)
Deferred/ current tax on
re-measurement losses on
pension scheme 51 242
Movement on deferred tax
on re-measurement losses
relating to rate change (93) -
-------- --------
Net other comprehensive (expense)
that will not be recycled
to profit or loss (296) (908)
Other comprehensive (expense)
for the period net of tax (794) (883)
Total comprehensive expense
for the year attributable
to equity holders of the
parent Company (1,055) (867)
======== ========
Consolidated Balance Sheet
at 31 March 2016
2016 2015
GBP000 GBP000
Non-current assets
Property, plant and
equipment 8,112 7,900
Intangible assets 387 452
Deferred tax assets 1,370 1,382
------- -------
9,869 9,734
Current assets
Inventories 2,899 4,006
Trade and other receivables 6,195 7,809
Current tax - 1
9,094 11,816
Total assets 18,963 21,550
======= =======
Current liabilities
Financial liabilities 2,941 3,392
Trade and other payables 5,727 6,801
8,668 10,193
Non current liabilities
Financial liabilities 251 400
Deferred tax 59 104
Provisions 200 200
Defined benefit pension
scheme deficit 4,692 4,544
------- -------
5,202 5,248
Total liabilities 13,870 15,441
Capital and reserves
Called up share capital 1,990 1,990
Share premium account 1,269 1,269
Capital redemption reserve 109 109
Hedging reserve (343) 155
Retained earnings 2,068 2,586
------- -------
Total equity 5,093 6,109
Total equity and liabilities 18,963 21,550
======= =======
Consolidated Cash Flow Statement
for the year ended 31 March 2016
2016 2015
GBP000 GBP000
Operating activities
(Loss)/ profit for the year
before tax (236) 76
Adjustments to reconcile
profit for the year to net
cash inflow from operating
activities:
Net finance costs excluding
pensions 178 184
Depreciation of property,
plant and equipment 1,235 1,180
Amortisation of software 97 105
Amortisation and impairment
of development costs 11 8
Profit on disposal of property,
plant and equipment (12) (6)
Loss on disposal of intangibles - 11
Share based payments 53 30
Difference between pension
contributions paid and amounts
recognised in the Consolidated
Income Statement (106) (99)
Decrease/ (increase) in inventories 1,107 (272)
Decrease/ (increase) in receivables 1,421 (268)
(Decrease)/ increase in payables (1,493) 160
Increase in provisions - 174
-------- --------
Cash inflow from operations 2,255 1,283
Income taxes received 1 37
Net cash inflow from operating
activities 2,256 1,320
Investing activities
Purchase of property, plant
and equipment (1,468) (1,261)
Purchase of software (31) (120)
Development costs (12) -
Disposal of plant and equipment 33 94
-------- --------
Net cash outflow from investing
activities (1,478) (1,287)
-------- --------
Financing activities
Interest paid (178) (184)
Repayment of asset loans (200) (200)
Net invoice finance (repayment)/
draw down (319) 217
Finance leases taken out 84 -
Net cash outflow from financing
activities (613) (167)
-------- --------
Net increase/ (decrease)
in cash and cash equivalents 165 (134)
Cash and cash equivalents
at the start of the year (291) (157)
Cash and cash equivalents
at the end of the year (126) (291)
======== --------
Cash and cash equivalents
comprise:
Bank overdraft (126) (291)
-------- --------
(126) (291)
Consolidated statement of changes in equity
Attributable
to equity
Capital holders
Share redemption Share Hedging Retained of the
capital reserve premium reserve earnings parent
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 31
March 2014 1,990 109 1,269 130 3,442 6,940
Profit for the
year - - - - 16 16
Other comprehensive
income for the
year net of tax - - - 25 (908) (883)
--------- ------------ --------- --------- ---------- -------------
Total comprehensive
income - - - 25 (892) (867)
Share based payments - - - - 30 30
Deferred tax
on employee share
options - - - - 6 6
--------- ------------ --------- --------- ---------- -------------
Total of transactions
with shareholders - - - - 36 36
Balance as at
1 April 2015 1,990 109 1,269 155 2,586 6,109
Loss for the
year - - - - (261) (261)
Other comprehensive
income for the
year net of tax - - - (498) (296) (794)
--------- ------------ --------- --------- ---------- -------------
Total comprehensive
income - - - (498) (557) (1,055)
Share based payments - - - - 53 53
Deferred tax
on employee share
options - - - - (14) (14)
--------- ------------ --------- --------- ---------- -------------
Total of transactions
with shareholders - - - - 39 39
Balance at 31
March 2016 1,990 109 1,269 (343) 2,068 5,093
========= ============ ========= ========= ========== =============
Share premium account
The share premium account balance includes the proceeds that were above the nominal value from issuance of the Company's equity share capital comprising 25p shares.
Capital redemption reserve
The capital redemption reserve has arisen on the cancellation of previously issued shares and represents the nominal value of those shares cancelled.
Retained earnings
Retained earnings include the accumulated profits and losses arising from the Consolidated Income Statement and certain items from the Statement of Comprehensive Income attributable to equity shareholders, less distributions to shareholders.
Hedging reserve
The hedging reserve records the effective portion of the net change in the fair value of the cash flow hedging instruments related to hedged transactions that have not yet occurred.
NOTES TO THE PRELIMINARY ANNOUNCEMENT
1. AUTHORISATION OF FINANCIAL STATEMENTS AND STATEMENT OF COMPLIANCE WITH IFRS
The Group's and Company's financial statements of Chamberlin for the year ended 31 March 2016 were authorised for issue by the board of directors on 23 May 2016 and the balance sheets were signed on the board's behalf by Kevin Nolan and David Roberts. The Company is a public limited Company incorporated and domiciled in England & Wales. The Company's ordinary shares are traded on the AIM market of the London Stock Exchange.
The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006.
The financial information set out in this announcement does not constitute the statutory accounts of the Group for the years to 31 March 2016 or 31 March 2015 but is derived from the 2016 Annual Report and Accounts. The Annual Report and Accounts for 2015 have been delivered to the Registrar of Companies and the Group Annual Report and Accounts for 2016 will be delivered to the Registrar of Companies in due course. The auditors, Grant Thornton UK LLP, have reported on the accounts for the year 31 March 2016 and have given an unqualified report which does not contain a statement under Sections 498(2) or 498(3) of the Companies Act 2006 nor an emphasis of matter paragraph.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (GBP000) except when otherwise indicated. The Company has taken advantage of the exemption provided under section 408 of the Companies Act 2006 not to publish its individual income statement and related notes.
Basis of consolidation
The consolidated financial statements comprise the financial statements of Chamberlin plc and its subsidiaries as at 31 March each year. The financial statements of subsidiaries are prepared for the same reporting year as the parent Company, using consistent accounting policies. All inter-Company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.
Accounting policies
The preliminary announcement has been prepared on the same basis as the financial statements for the year ended 31 March 2015.
Going Concern
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Financial Statements.
3. SEGMENTAL ANALYSIS
For management purposes, the Group is organised into two operating divisions according to the nature of the products and services. Operating segments within those divisions are combined on the basis of their similar long term characteristics and similar nature of their products, services and end users as follows:
The Foundries segment is a supplier of iron castings, in raw or machined form, to a variety of industrial customers who incorporate the castings into their own products or carry out further machining or assembly operations on the castings before selling them on to their customers.
The Engineering segment provides manufactured and imported products to distributors and end-users operating in the safety and security markets. The products fall into the categories of door hardware, hazardous area lighting and control gear.
Management monitors the operating results of its divisions separately for the purposes of making decisions about resource allocation and performance assessment. The Chief Operating Decision Maker is the Chief Executive.
(i) By operating segment
Segmental operating
Segmental revenue profit
Year ended 2016 2015 2016 2015
GBP000 GBP000 GBP000 GBP000
Foundries 25,635 30,432 1,212 1,259
Engineering 9,353 10,403 679 988
Segmental results 34,988 40,835 1,891 2,247
========= ========= ========== ==========
Reconciliation of reported
segmental operating profit
Segment operating profit 1,891 2,247
Shared costs (excluding
share based payment charge) (1,061) (1,260)
Exceptional and non-underlying
costs (746) (583)
Net finance costs (320) (328)
(Loss)/ profit before tax (236) 76
Segmental assets
Foundries 13,560 15,221
Engineering 4,768 5,617
---------- ----------
Segmental net assets 18,328 20,838
---------- ----------
Segmental liabilities
Foundries (4,313) (4,844)
Engineering (1,614) (2,157)
---------- ----------
Segmental net assets (5,927) (7,001)
---------- ----------
Unallocated net liabilities (7,308) (7,728)
Total net assets 5,093 6,109
---------- ----------
Capital expenditure,
depreciation and amortisation
Capital additions Foundries Engineering Total
2016 2015 2016 2015 2016 2015
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Property, plant
and equipment 1,381 937 87 324 1,468 1,261
Software 13 80 18 40 31 120
Development costs - - 12 - 12 -
Depreciation and
amortisation
Property, plant
and equipment (985) (941) (250) (239) (1,235) (1,180)
Software (85) (83) (12) (22) (97) (105)
Development costs - - (11) (8) (11) (8)
(ii) By geographical segment
2016 2015
Revenue by location of customer GBP000 GBP000
United Kingdom 20,179 24,992
Germany 4,952 6,997
Rest of Europe 7,594 6,592
Other countries 2,263 2,254
------- -------
34,988 40,835
======= =======
4. FINANCE COSTS AND FINANCE REVENUE
2016 2015
GBP000 GBP000
Finance costs
Bank overdraft interest payable (178) (184)
Finance cost of pensions (142) (144)
------- -------
(320) (328)
======= =======
5. DIVIDS PAID AND PROPOSED
2016 2015
GBP000 GBP000
Paid equity dividends on ordinary - -
shares
======= =======
Proposed final dividend subject - -
to shareholder approval
======= =======
6. (LOSS)/ EARNINGS PER SHARE
The calculation of (loss)/ earnings per share is based on the profit attributable to shareholders and the weighted average number of ordinary shares in issue. In calculating the diluted (loss)/ earnings per share, adjustment has been made for the dilutive effect of outstanding share options. Underlying (loss)/ earnings per share, which excludes non-underlying items, as analysed below, has also been disclosed as the Directors believe this allows a better assessment of the underlying trading performance of the Group. Exceptional costs are detailed in note 7.
2016 2015
GBP000 GBP000
(Loss)/ earnings for basic earnings
per share (261) 16
Exceptional costs 463 417
Net financing costs and service cost
on pension obligations 372 280
Share based payment charge 53 30
Taxation effect of the above (177) (153)
------- -------
Earnings for underlying earnings per
share 450 590
======= =======
2016 2015
Number Number
'000 '000
Weighted average number of ordinary
shares 7,958 7,958
Adjustment to reflect shares under
options 160 212
------- -------
Weighted average number of ordinary
shares - fully diluted 8,118 8,170
======= =======
As at 31 March 2016 there is no adjustment for the 160,300 shares under option as they are required to be excluded from the weighted average number of shares for diluted loss per share as they are anti-dilutive for the period then ended.
7. EXCEPTIONAL COSTS AND NON-UNDERLYING
2016 2015
GBP000 GBP000
Group reorganisation 463 314
Environmental clean-up - 103
Exceptional costs 463 417
Share based payment charge 53 30
Defined benefit pension scheme administration
costs 230 136
------- -------
Non-underlying other operating expenses 746 583
Finance cost of pensions 142 144
Taxation
- tax effect of exceptional and non-underlying
costs (177) (153)
------- -------
711 574
------- -------
During 2015 and continuing into 2016 the Group continues to rationalise its operations given the reduced levels of turnover seen in the Leicester and Scunthorpe foundries. Group reorganisation costs, including redundancy and recruitment, relate to this rationalisation.
Environmental clean-up costs relate to exceptional costs incurred in the clean-up of the Scunthorpe site.
8. FINANCIAL LIABILITIES
2016 2015
GBP000 GBP000
Current liabilities
Bank overdraft 126 291
Current instalments due on asset finance
loans 200 200
Invoice finance facility 2,582 2,901
Current instalments due on finance 33 -
leases
2,941 3,392
Non-current liabilities
Instalments due on asset finance loans 200 400
Instalments due on finance leases 51 -
------- -------
Total financial liabilities 3,192 3,792
------- -------
The overdraft is held with HSBC Bank plc as part of the Group facility of GBP500,000, is secured on all assets of the business, is repayable on demand and is renewable in March 2017. Interest is payable at 2.0% (2015: 2.0%) over base rate.
Asset finance loans are secured against various items of plant and machinery across the Group. These loans are repayable by monthly instalments for a period of two years to March 2018. Interest is payable at 3.25% over base rate. GBP200,000 is repayable within year 1-2.
Other finance leases are secured against the specific item to which they relate. These leases are repayable by monthly instalments for a period of three years to March 2019. GBP33,000 is repayable in 1-2 years and GBP18,000 within 2-5 years. Interest is payable at a fixed amount that ranges between 3.1% and 4.6%.
Invoice finance balances are secured against the trade receivables of the Group and are repayable on demand. Interest is payable at 2.3% over base rate. The maximum facility as at 31 March 2016 is GBP7.0m. Management have assessed the treatment of the financing arrangements and have determined it is appropriate to recognise trade receivables and invoice finance liabilities separately.
9. PENSIONS ARRANGEMENTS
During the year, the Group operated funded defined benefit and defined contribution pension schemes for the majority of its employees, these being established under trusts with the assets held separately from those of the Group. The pension operating cost for the Group defined benefit scheme for 2016 was GBP230,000 (2015: GBP136,000) plus GBP142,000 of financing cost (2015: GBP144,000).
The other schemes within the Group are defined contribution schemes and the pension cost represents contributions payable. The total cost of defined contributions schemes was GBP331,000 (2015: GBP312,000). The notes below relate to the defined benefit scheme.
The actuarial liabilities have been calculated using the Projected Unit method. The major assumptions used by the actuary were (in nominal terms):-
31 March 31 March 31 March
2016 2015 2014
Salary increases n/a n/a n/a
Pension increases (post
1997) 2.9% 2.9% 3.2%
Discount rate 3.5% 3.2% 4.3%
Inflation assumption
- RPI 2.9% 2.9% 3.3%
Inflation assumption
- CPI 2.1% 1.8% 2.2%
The post retirement mortality assumptions allow for expected increases in longevity. The current disclosures relate to assumptions based on longevity in years following retirement as of the balance sheet date, with future pensions relating to an employee retiring in 2032.
2016 2015
Years Years
Current pensioner at 65
- male 21.4 21.3
* female 23.7 23.6
Future pensioner at 65
- male 22.4 22.3
* female 24.8 24.8
The scheme was closed to future accrual with effect from 30th November 2007, after which the Company's regular contribution rate reduced to zero (previously the rate had been 9.1% of members' pensionable salaries).
During the previous year the triennial valuation as at 1 April 2013 was concluded. In return for maintaining the previous contribution arrangements and extending the deficit reduction period to 2028, the Company has given security over the Group's land and buildings to the pension scheme. With effect from 1 April 2016 deficit reduction contributions will increase to GBP21,252 per month (previously GBP20,633 per month), with a 3% annual increase thereafter.
The contributions expected to be paid during the year to 31 March 2017 are GBP255,000.
The scheme assets are stated at the market values at the respective balance sheet dates. The assets and liabilities of the scheme were:
2016 2015
GBP000 GBP000
Equities/ diversified
growth fund 11,719 12,451
Bonds 1,123 1,417
Insured pensioner assets 9 9
Cash 123 131
--------- ---------
Market value of assets 12,974 14,008
Actuarial value of liability (17,666) (18,552)
--------- ---------
Scheme deficit (4,692) (4,544)
Related deferred tax
asset 845 909
--------- ---------
Net pension liability (3,847) (3,635)
--------- ---------
2016 2015
Net benefit expense recognised GBP000 GBP000
in profit and loss
Administration costs - (32)
Net interest expense (142) (144)
-------- --------
(142) (176)
-------- --------
Re-measurement losses/ (gains) 2016 2015
in other comprehensive income GBP000 GBP000
Actuarial (gains)/ losses arising
from changes in financial assumptions (575) 2,196
Actuarial losses arising from - -
changes in demographic assumptions
Experience adjustments (5) 208
Return on assets (excluding
interest income) 834 (1,254)
-------- --------
254 1,150
-------- --------
2016 2015
GBP000 GBP000
Actual return on plan
assets (396) 1,762
-------- --------
Movement in deficit during 2016 2015
the year GBP000 GBP000
Deficit in scheme at
beginning of year (4,544) (3,493)
Employer contributions 248 275
Net benefit expense (142) (176)
Actuarial (loss)/ gain (254) (1,150)
-------- --------
Deficit in scheme at
end of year (4,692) (4,544)
-------- --------
Movement in scheme assets 2016 2015
GBP000 GBP000
Fair value at beginning
of year 14,008 12,856
Interest income on scheme
assets 438 540
Return on assets (excluding
interest income) (834) 1,254
Employer contributions 248 275
Benefits paid (886) (885)
Administrative costs - (32)
-------- --------
Fair value at end of
year 12,974 14,008
-------- --------
Movement in scheme liabilities 2016 2015
GBP000 GBP000
Benefit obligation at start
of year 18,552 16,349
Interest cost 580 684
Actuarial (gains)/ losses arising
from changes in financial assumptions (575) 2,196
Actuarial losses arising from - -
changes in demographic assumptions
Experience adjustments (5) 208
Benefits paid (886) (885)
-------- --------
Benefit obligation at end of
year 17,666 18,552
-------- --------
The weighted average duration of the pension scheme liabilities are 14.5 years (2015: 14.5 years).
A quantitative sensitivity analysis for significant assumptions as at 31 March 2016 is as shown below:
2016
Present value of scheme liabilities GBP000
when changing the following assumptions:
Discount rate increased by 1% p.a. 15,575
RPI and CPI increased by 1% p.a. 18,538
Mortality- members assumed to be
their actual age as opposed to 1
year older 18,320
The sensitivity analysis above has been determined based on a method that extrapolates the impact on defined benefit obligations as a result of reasonable changes in key assumptions occurring at the end of the year.
10. REPORT AND ACCOUNTS
Copies of the Annual Report will be available on the Group's website, www.chamberlin.co.uk from 24 June 2016 and from the Group's head office at Chuckery Road, Walsall, West Midlands, WS1 2DU. The AGM will be held on 22 July 2016 at Chuckery Road, Walsall, West Midlands.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GMGZKVFLGVZM
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May 24, 2016 02:00 ET (06:00 GMT)
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